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Shropshire, a county with a population of 323,000 (ONS Census 2021), has been affected by motor finance mis-selling. An estimated 30,524 drivers in Shropshire may have been impacted based on calculations using ONS Census 2021 data and FCA estimates.
How Motor Finance Mis-Selling Affected Shropshire
Motor finance mis-selling involved various local dealerships in Shropshire, including Sytner Shropshire, Pendragon Shropshire, Listers Group Shropshire, and John Clark Motor Group Shropshire. These dealerships sold
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements to customers under terms that may have been unfair or misleading.
Major lenders operating in the area included
Black Horse (Lloyds Banking Group),
MotoNovo Finance,
Close Brothers Motor Finance,
Santander Consumer Finance, Barclays Partner Finance, and
[Alphera](https://mlj.org.uk/lenders/alphera-financial-services) Financial Services (BMW). These financial institutions provided financing options to local car buyers through dealerships within Shropshire.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling due to
discretionary commission arrangements. This inquiry uncovered that between 6 April 2007 and 1 November 2024, 12.1 million eligible agreements (FCA, March 2026) by such practices (FCA estimate). The total amount involved in these mis-sold agreements was £7.5 billion (FCA estimate), with an average claim of £829 per customer (FCA estimate).
Dealerships and lenders engaged in commission schemes that incentivised the sale of particular finance products, often at higher rates than necessary for the buyer’s circumstances. This led to customers being unaware they were paying more than necessary due to hidden costs and fees.
How Shropshire Residents Can Check Their Finance Agreements
Shropshire residents who suspect their motor finance agreements may have been mis-sold should review certain key aspects of their contracts:
- Dates: Ensure the agreement was made between 6 April 2007 and 1 November 2024.
- Documents: Gather your original finance agreement, any letters or emails from your lender, and receipts for payments made.
check if you were charged a higher interest rate than necessary, paid excessive fees, or signed up for unnecessary add-ons. If these factors apply to your situation, it is advisable to seek further clarification about the terms of your financing arrangement.
Major lenders operating in Shropshire such as Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW) all have processes in place for handling complaints. You can complain directly to your lender for free without needing the assistance of a
claims management company.
If you are not satisfied with your lender's response or if they do not address your concerns adequately, you can escalate your complaint to the
Financial Ombudsman Service (
FOS) at no cost. The FOS provides an impartial and independent service to resolve disputes between consumers and financial institutions.
Sources and References
- FCA estimates on motor finance mis-selling: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total (FCA estimate), £829 average per eligible agreement.
- ONS Census 2021 for population data of Shropshire.
- Financial Conduct Authority (FCA) and Financial Ombudsman Service (FOS).
Car Finance Compensation in Your Area
The FCA confirmed that 12.1 million motor finance agreements across the UK qualify for compensation. The FCA-estimated scheme average of £829 per eligible agreement per agreement, totalling £7.5 billion in redress. If you took out PCP or HP car finance between 6 April 2007 and 1 November 2024, your agreement may be eligible regardless of where you live in the UK.
The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.